Monday, April 10, 2017

PSALM assures no increase for now in UC stranded costs

There is no increase in
the universal charge for stranded contract costs (UC-SCC) in the consumers’
electric bills, because the regulatory mandate is for Power Sector Assets and
Liabilities Management Corporation (PSALM) to just continue collections at
prevailing level of P0.1938 per kilowatt hour.

It has been
categorically stated that the UC rate in the bills is already at that extent,
but since PSALM still has shortfall in collections, it was allowed to stretch
its pass-on of such charges.

“The March 6, 2017
Order did not authorize the collection of any new rate for recovery from
consumers,” Energy Regulatory Commission (ERC) Spokesperson Floresinda B. Digal
has primarily stated.

She emphasized that
‘the Commission merely allowed PSALM to continue the collection of the
universal charge for stranded contract cost for calendar years 2007-2010 as
determined in 2013.”

In that ERC ruling four
years ago, the regulatory body authorized the collection of aggregate P53.85
billion, purportedly for recovery over four years.

But Digal emphasized
that as per PSALM’s submission, “after the lapse of four years, the full amount
has not yet been fully recovered.”

That then prompted the
ERC to decide on allowing PSALM “to extend authority to recover from consumers
until the full amount is collected.”

PSALM has pending UC
applications of roughly P100 billion for both stranded contract costs and
stranded debts, but the ERC has yet to decide on such petitions.

Given the permission on
PSALM’ extended UC collections, Manila Electric Company (Meralco) Assistant
Vice President Joe Zaldarriaga stressed that “we will comply with any ERC
directive in relation to the said collection.”

He further explained
that “just like the other distribution utilities, we are the collecting agent
of the universal charge which goes to PSALM.”